House Majority Whip Tom Emmer warned on February 22 that government agencies under the Biden administration are beginning to collect data on Bitcoin mining companies.
In a letter to the Office of Management and Budget (OMB), Emmer acknowledged that OMB has approved and expedited a request from the Energy Information Administration (EIA) that would impose a “new, mandatory information collection regime” on the Bitcoin mining industry.
The fact that OMB approved the information collection request without a comment period means the agency must prove that there is a likelihood of public harm, Emmer noted.
Emmer denied that such harm exists. In an X statement he says wrote:
“Bitcoining does not pose a threat to public safety. Period of time. The [Office of Management and Budget’s] Abusing its emergency powers to attack Bitcoin miners requires an explanation.”
He further defended Bitcoin in the text of his letter, writing that Bitcoin mining companies “play an integral role in the Bitcoin network.” He added that the open and permissionless nature of Bitcoin’s technology “embodies American values” and urged a politically neutral policy.
Emmer linked the intelligence collection policy to US President Joe Biden’s leadership, arguing that the OMB and EIA are “enforcing the Biden administration’s regressive policy position on energy consumption” and applying it discriminatorily to the crypto -industry.
The Biden administration introduced energy policy more broadly in its Inflation Reduction Act in August 2022.
Consumer concerns are unfounded
According to Emmer, the EIA is concerned about the possibility that Bitcoin mining will increase due to rising prices, which could lead to increased energy consumption. The office is also concerned about the high energy consumption during a ‘major cold wave’.
However, the congressman believes this is not a legitimate concern as mining activity can adapt during peak hours and changing weather conditions.
Emmer added that the EIA aims to collect a wide variety of data from 82 crypto mining companies. He suggested the breadth of the study is an attempt to impose Scope 3 climate policies – a category that includes energy data beyond a company’s own operations.
Emmer compared the current investigative efforts to the US SEC’s poorly received attempts to gather similar information.
In a separate interview with FOX Business, Emmer emphasized that companies that do not comply with the request could face criminal and civil penalties, including daily fines of up to $10,000. Until the end of the survey period in July, companies must provide information monthly.
A public statement from the EIA on January 31 revealed that it began investigating several crypto mining companies in early February, following emergency approval from the OMB.